Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.
If pollution is unregulated, the two firms will produce using process ________, and a total of ________ tons of smoke will be emitted each day.
A)C; 12
B)D; 4
C)B; 16
D)A; 20

Question

Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.   
If pollution is unregulated, the two firms will produce using process ________, and a total of ________ tons of smoke will be emitted each day.
A)C; 12 
B)D; 4 
C)B; 16 
D)A; 20

Quizplus · Accepted Answer

In the absence of regulation, each firm would choose process A, which is the cheapest, and each would emit 10 tons of smoke each day, for a total of 20 tons.

Two Firms, Acme and FirmCo, Have Access to Five Production